Lula vows to end betting platforms as clubs warn of $1bn loss

President Luiz Inácio Lula da Silva declared on Friday that he would end betting platforms in Brazil if the decision depended solely on him, calling the industry "the most horrible thing" he has ever seen. Speaking at a rally in Guarulhos, he compared gambling addiction to crack cocaine and cited a woman who allegedly attempted suicide three times due to betting debts.

The government is preparing a provisional measure to ban online casino games and impose new restrictions on sports betting, according to reports. The measure would escalate regulations introduced in July requiring addiction warnings on advertisements and August rules targeting impulsive betting features.

“If it depends on my personal will, I will end the bets in this country.”

Football clubs reacted sharply, publishing a joint manifesto titled "The End of Brazilian Football" warning that a ban could cost them approximately R$1 billion in annual sponsorship revenue. Flamengo, Corinthians, Palmeiras, and São Paulo each hold contracts exceeding R$100 million per year with betting firms.

Clubs argue that regulation with strict oversight is the proper response to social harms, not prohibition. They contend that abrupt rule changes would jeopardize financial planning, especially for smaller teams dependent on betting revenue.

Lula dismissed the clubs' warnings as "baloney," noting Brazil won five World Cups before betting companies dominated sponsorship. He stated the government is willing to forfeit tax revenue to protect vulnerable families, citing an estimated R$62 billion flowing from households to platforms annually.

Betting operators are preparing legal challenges, arguing prohibition would expand the unregulated market. Media companies, including Globo, which owns a betting platform, also face revenue exposure from advertising restrictions.